Insolvency and Bankruptcy code 2016 ,Top court helds Personal Guarantors liable.

A guarantor ensure that in case of the form the entity is unable to perform with respect to US economic liability it will step in Paga permission of lender and cover the loss of the entity along with keeping the the Loan on time.

With this judgement now it will be possible for banks to go after the guarantors who ensured recovery of dues will be made by the entity in case of any loss with the help of the guarantor.

The code allows the bank to settle any loss by an individual or company with help of National Company Law Tribunal for the the corporations and Company and debt recovery Tribunal for partnerships and single individual.

Way ahead,

• Now the defaulters are here and afraid that the court will take strict actions and has put liability for their actions with accountability to the lenders

• It cannot be denied that section 29a of the IBC will play a major role in determining the faith of lenders.

• Court clearly mentioned that proper implementation of the code will make sure that India doesn't remain and become a "Defaulters paradise"..